Baidu Inc. (BIDU) closed at $87.65 in the latest trading session, marking a +1.1% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 1.07%.
Coming into today, shares of the web search company had gained 7.58% in the past month. In that same time, the Computer and Technology sector gained 14.88%, while the S&P 500 gained 11.33%.
Investors will be eagerly watching for the performance of Baidu Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. It is anticipated that the company will report an EPS of $1.96, marking a 28.99% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.3 billion, down 1.56% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $18.8 billion, which would represent changes of -4.27% and +1.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Baidu Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Currently, Baidu Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Baidu Inc. is presently trading at a Forward P/E ratio of 8.6. This represents a discount compared to its industry's average Forward P/E of 18.29.
Meanwhile, BIDU's PEG ratio is currently 2.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Services stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baidu, Inc. (BIDU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
